8/4/2019 Coop Rate

1/13

Search Results | "'mscb'"

Tags: All-India licence, cooperative bank, eknath

thakur, Reserve Bank of India, saraswat bank

World is there for us to conquer : Chairman, Saraswat Bank

Posted on 13 June 2011 by Akshay Kumar

The Cooperative giant in Urban Cooperative Banks, SaraswatBank is upbeat on getting green signal from RBI for going ahead with all India operation.

Talking to Indiacooperative.com, Mr Eknath Thakur, Chairman and the man behind the

miracle said that we have mega expansion plans in the wake of RBIS permission.

Reserve Bank of India has given licence to Saraswat Bank for all India operation. Whileother UCBs, barring a few are struggling to find feet, Saraswat bank miraculous growth is

testimony of power of idea of cooperative movement.

Mr Eknath Thaur, Chairman of the Bank told Indian Cooperative.com that in the

beginning we would concentrate in Western and Southern India but would soon spread to

other parts of the country.World is there now for us to conquer, said a ecstatic Thakur toIndian Cooperative.Com.

Next five year would prove turning point for the bank as we aim at doubling the total

number of Banks branches to 500 from the present number of 226, said the Chairman.Many people are to be hired as the existing personnel would not be able to handle all the

pressure.

http://indiancooperative.com/tag/all-india-licence/http://indiancooperative.com/tag/cooperative-bank/http://indiancooperative.com/tag/eknath-thakur/http://indiancooperative.com/tag/eknath-thakur/http://indiancooperative.com/tag/reserve-bank-of-india/http://indiancooperative.com/tag/saraswat-bank/http://indiancooperative.com/banks/world-is-there-for-us-to-conquerchairmansaraswat-bank/http://indiancooperative.com/wp-content/uploads/2011/06/Saraswat-Bank-171.jpghttp://indiancooperative.com/tag/all-india-licence/http://indiancooperative.com/tag/cooperative-bank/http://indiancooperative.com/tag/eknath-thakur/http://indiancooperative.com/tag/eknath-thakur/http://indiancooperative.com/tag/reserve-bank-of-india/http://indiancooperative.com/tag/saraswat-bank/http://indiancooperative.com/banks/world-is-there-for-us-to-conquerchairmansaraswat-bank/

8/4/2019 Coop Rate

2/13

We have a work force of 3338 which, by the end of 2016 would become more than 9000.

This year alone 1250 persons are to be recruited, said Mr Thakur.

Operating currently in six states Maharashtra, Goa, Karnataka, Gujarat, Madhya

Pradesh and Delhi-NCR, the Bank proposes to open branches in more cities across India.The bank has plans to open 100 new branches this financial year, including 77 in the six

states where it is now present.

The bank has raised its business volume target to Rs. 75,000 crore in 2016 from Rs.

28,000 crore currently.

Saraswat Cooperative Bank recently became the largest cooperative bank in the country

after achieving business mix of Rs. 28,000 crore surpassing the erstwhile largestcooperative bank, Maharashtra State Co-operative Bank with a business mix of Rs.

27,800 crore. Even otherwise, MSCB is caught in never ending political battle of

Congress and NCP.

Earlier, Saraswat Bank tied up with Anil Ambanis ADAG to sell Core BankingSolutions Swift Core which has been developed by Saraswat Infotech Limited, a

subsidiary of Saraswat Bank.

It should not be forgotten that majority of urban cooperative banks numbering 1750 are

getting reprimanded by RBI from time to time on flouting this norm or that. And thestory of Madhavpura mercantile bank created such a fear in the minds of depositors that

the very survival of Urban Cooperative Banks became shaky. Saraswat Banks growth

story has suddenly restored confidence that all is not lost yet.

Comments (2)

Tags: ajit, Congress, MSCB, nabard, Pawar

MSCB:Congress scores over NCP

http://indiancooperative.com/banks/world-is-there-for-us-to-conquerchairmansaraswat-bank/#commentshttp://indiancooperative.com/tag/ajit/http://indiancooperative.com/tag/congress/http://indiancooperative.com/tag/mscb/http://indiancooperative.com/tag/nabard/http://indiancooperative.com/tag/pawar/http://indiancooperative.com/banks/mscbcongress-scores-over-ncp/http://indiancooperative.com/wp-content/uploads/2011/06/eknath-thakur-2-365.jpghttp://indiancooperative.com/banks/world-is-there-for-us-to-conquerchairmansaraswat-bank/#commentshttp://indiancooperative.com/tag/ajit/http://indiancooperative.com/tag/congress/http://indiancooperative.com/tag/mscb/http://indiancooperative.com/tag/nabard/http://indiancooperative.com/tag/pawar/http://indiancooperative.com/banks/mscbcongress-scores-over-ncp/

8/4/2019 Coop Rate

3/13

Posted on 01 June 2011 by Dipak Kumar

From Virag Pachpore

EVEN as the Maharashtra State Cooperative Bank (MSCB), the apex bank of

progressive state of Maharashtra was celebrating its centenary year, the Reserve Bankof India (RBI) on May 4, dissolved its 52-member board of directors and appointed

administrators. The action was initiated as the NABARD indicted the MSCB into

financial irregularities. The MSCB was dominated for years together by the NationalistCongress Party (NCP). It may be noted that the Deputy Chief Minister Ajit Pawar has

virtually established his single handed rule over the MSCB in last some years. As such

this action by the RBI has given rise to speculations in cooperative and political sectors in

Maharashtra.

With this swift and secret move the Congress Party has scored over the Nationalist

Congress Party(NCP) in Maharashtra. The RBI decision, based on NABARD report

indicting the MSCB in large-scale irregularities, has come as a shot in the arms of theCongress Party in the state. With this the Congress, under the leadership of Chief

Minister Prithviraj Chavan, can hope to come out of the domination of the NCP in the

state politics. The haste and secrecy with which the RBI acted on the NABARD report

clearly indicated a political design underneath to unsettle the NCP in state politics.

Meanwhile, BJP MLA Devendra Fadanvis has alleged in the State Vidhan Sabha a few

days ago that though the MSCB board of directors altered its balance sheet to show a

profit of Rs 2.87 crore, actually it suffered a loss of Rs 775 crore. The MSCB has thrown

to winds the directives of NABARD and RBI bringing the bank at the brink ofbankruptcy. 75 per cent of the loans given to the cooperative sugar factories and spinning

mills in the state was not repaid that too when most of these factories are owned anddominated by Congress and NCP leadership.

The NABARD conducted an inquiry into the negative performance of the MSCB for the

year 2008-09 and submitted that report in 2009-10. For the last one year the RBI did not

take any action against the MSCB. But suddenly it woke up to the irregularities

committed by the bank and dissolved the board of directors in the current financial year.This belated action points to the struggle of political one-up-man-ship going on in the

ruling Congress-NCP coalition in Maharashtra.

The MSCB, which came into existence in 1961 when the Bombay State Co-op Bank and

Vidarbha Co-op Bank merged with the formation of the state of Maharashtra. As such ithas branches only in Nagpur and Mumbai. MSCB is the apex bank and gets funds from

NABARD for agriculture refinancing. NABARD loans are routed through the apex bank

to district central co-op banks, and credit societies in a three-tier structure. Moreover, theMSC is the source of latest information on the state of agriculture as it updates the report

every year.

8/4/2019 Coop Rate

4/13

The MSCB has certain restrictions on refinancing. It can provide loans for agricultural

practices but not to sustain the sugar factories and spinning mills which are run on

cooperative basis. In Maharashtra most of the sugar factories and spinning mills areowned by Congress and NCP stalwarts. The MSCB, following the directions of the state

government, financed these factories and mills extending a loan of Rs 17,500 crore in last

two years.

Interestingly, the same people dominate the Government administration, MSCB andsugar factories and spinning mills. So, they play a triple role in managing all these

spheres of power. Since 1999 to 2009 the NCP dominated the State politics for a number

of reasons. During 1999-2004, while the UPA I dispensation at the Centre which had itsown problems of survival, the Congress-NCP coalition in the State enjoyed a wafer thin

majority. The 2004-09 period was also dominated by political rivalries in the state. The

NCP, under the leadership of Sharad pawar and his nephew Ajit Dada Pawar,consolidated their position in the State.

During this period the NCP virtually controlled the MSCB with Sharad Pawar having hisfinal say over the matters of appointment of Chairman, and board of directors. The NCP

has consolidated its base to the rural sector in at least 10 districts of Maharashtraincluding Kolhapur, Sangli, Sholapur, Ahmednagar, Satara, Pune, Nasik, Jalgaon, Dhulia

and Nandurbar. The party has developed a strong army of grass-root workers in these

districts making it difficult for the Congress to break into its bastion.

But as the position of the Congress party improved at the Centre and at the State levelwith Chief Minister Prithviraj Chavan taking over, the Congress did not spare a single

chance to show NCP its place in the politics. In Kolhapur the one time staunch Pawar

supporter Sadashiv Mandlik was made to contest the Lok Sabha election as independent

against the NCP candidate, a case was registered against another Pawar loyalist who ischairman of Singhgarh Institute in Pune. Not only this, Deputy Chief Minister Ajit Pawar

and his wife Sunetra Pawar were indicted in encroachment case in Pune river bed, and

strictures against Pawar regarding the Lavasa project near Pune are too well known.

Political observers feel that this is being done to facilitate the merger of the NCP into the

Congress. There have been attempts earlier also but the NCP in the State was against the

merger. They have, over the years, developed a strong base in the state. The NCP has1800 ZP members, 3500 Panchayat members, nearly 3000 members in urban bodies plus

3000 office bearers of various committees of the party and the government boards,

corporations etc. It is most unlikely that the NCP would give up this political clout they

wield in the State so easily. So the Congress resorted to arm twisting tactics through theRBI in dissolving the NCP dominated MSCB board.

Meanwhile, Union Agriculture Minister and NCP Supremo Sharad Pawar held the State

Government responsible for the RBI action on the MSCB. Pawar said that the

Government did not consult the board before initiating this action. He claimed that theapex bank advanced loans to sugar factories at the recommendations of the state

government as such it was the responsibility of the government to find a way out to tide

8/4/2019 Coop Rate

5/13

over the outstanding. Though the government had promised financial help to MSCB to

tide over the crisis, it did not extend the same in time to avoid the RBI action, Pawar

alleged.

Denying that there was corruption in the bank, Pawar said that there were certain

irregularities which could have been rectified after discussion. There was no need fordissolving the board of directors and appoint administrators on the bank, he said. The

MSCB Chairman, Manikrao Patil, a staunch NCP leader also echoed Pawars views.

Political observers feel that the RBI decision came as a personal setback to Sharad Pawar

and his nephew Ajit Pawar, who was virtually controlling the bank for last 15 years.

Courtsey:Organizer

Comments (0)

Tags: ajit pawar, chavan, Congress, Mahaeashtra State

Cooperative Bank, NCP, sharad pawar

MSCB: Truce better than Fighting

Posted on 26 May 2011 by Dipak Kumar

Political maturity has at last begun to bring the two allies-NCP and Congress close

again,After the in initial fire work and acrimonious exchanges, saner mind is prevailingonce again.

NCP chief Sharad Pawar said in N Delhi that the row over the issue of the Maharashtra

State Cooperative Bank (MSCB) will not have any impact on the ties between his partyand the Congress in the state.

The Union Agriculture minister also indicated that his party and the Congress would

contest the local body elections scheduled by 2011 end separately.

The Reserve Bank of India has been requested by the state government to consider

allowing the bank to continue its business as its net worth for the fiscal last ended figuredto a positive amount of Rs 238.14 crore.

Earlier, Prithavi Raj Chavan ,the Chief Minster has told media that the dissolution of

Board of MSCB was not political. It was not aimed at weakening the grip of NCP on the

http://indiancooperative.com/banks/mscbcongress-scores-over-ncp/#respondhttp://indiancooperative.com/tag/ajit-pawar/http://indiancooperative.com/tag/chavan/http://indiancooperative.com/tag/congress/http://indiancooperative.com/tag/mahaeashtra-state-cooperative-bank/http://indiancooperative.com/tag/mahaeashtra-state-cooperative-bank/http://indiancooperative.com/tag/ncp/http://indiancooperative.com/tag/sharad-pawar/http://indiancooperative.com/banks/mscb-truce-better-than-fighting/http://indiancooperative.com/banks/mscbcongress-scores-over-ncp/#respondhttp://indiancooperative.com/tag/ajit-pawar/http://indiancooperative.com/tag/chavan/http://indiancooperative.com/tag/congress/http://indiancooperative.com/tag/mahaeashtra-state-cooperative-bank/http://indiancooperative.com/tag/mahaeashtra-state-cooperative-bank/http://indiancooperative.com/tag/ncp/http://indiancooperative.com/tag/sharad-pawar/http://indiancooperative.com/banks/mscb-truce-better-than-fighting/

8/4/2019 Coop Rate

6/13

farmers community who are backing NCP for the benefits they got through cooperative

banks.

A truce is inevitable given the fact that Shiv Sena, BJP and now Athawale have joinedhands to take on Congress-NCP combine. The tone and tenor of leaders of each parties

Congress as well as NCP has softened over the weeks.

Meanwhile, there is report that NABARD may refinancing the MSCB. The state

government has made a strong pitch with RBI for this purpose. Meanwhile, the politicalheat over ot MSCB between the ruling allies Congress and NCP is easing slowly with

each realizing the futility of this showdown.

The Reserve Bank of India has been requested by the state government to consider

allowing the bank to continue its business as its net worth for the fiscal last ended figuredto a positive amount of Rs 238.14 crore.

Comments (0)

Tags: chavan, Congress, cooperative, maharashtra,

MSCB, mumbai, NCP, Pawar

MSCB: Row between NCP and Cong may ease

Posted on 19 May 2011 by Vimal Kumar

Twelve days after the battle-lines were drawn between the Congress and its ally, the

Nationalist Congress Party (NCP) in the state over the dissolution of the board of

directors of the Maharashtra State Cooperative Bank (MSCB), the first signs of adiffusion in tension emerged.

Chief minister Prithviraj Chavan called for a meeting of the state cabinet of ministers on

May 20. Some NCP ministers had earlier accused the Congress of targeting the party to

score political points.

The NCP is considered to have control over the banks operations. Deputy chief minister

Ajit Pawar has been on its directorial board for a decade-and-a-half. On May 7, the

Reserve Bank of India (RBI) asked the state government to dissolve the board, in view of

alleged discrepancies in the functioning, and appoint administrators in their place.

Pawar had accused the Congress leadership at the Centre of plotting the move.

http://indiancooperative.com/banks/mscb-truce-better-than-fighting/#respondhttp://indiancooperative.com/tag/chavan/http://indiancooperative.com/tag/congress/http://indiancooperative.com/tag/cooperative/http://indiancooperative.com/tag/maharashtra/http://indiancooperative.com/tag/mscb/http://indiancooperative.com/tag/mumbai/http://indiancooperative.com/tag/ncp/http://indiancooperative.com/tag/pawar/http://indiancooperative.com/banks/mscb-row-between-ncp-and-cong-may-ease/http://indiancooperative.com/banks/mscb-truce-better-than-fighting/#respondhttp://indiancooperative.com/tag/chavan/http://indiancooperative.com/tag/congress/http://indiancooperative.com/tag/cooperative/http://indiancooperative.com/tag/maharashtra/http://indiancooperative.com/tag/mscb/http://indiancooperative.com/tag/mumbai/http://indiancooperative.com/tag/ncp/http://indiancooperative.com/tag/pawar/http://indiancooperative.com/banks/mscb-row-between-ncp-and-cong-may-ease/

8/4/2019 Coop Rate

7/13

The state deputy chief minister has skipped government functions presided over by

Chavan ever since the controversy erupted.

The two leaders will finally meet in Delhi on May 19, as part of an official statedelegation, to the finance ministry for approval to the budgeted plan size for 2011-12.

Congress party is trying to get a hand on the NCP bank so they removed all NCP men

now they have put there men in place.

Comments (0)

Tags: ajit pawar, Congress, MSCB, mumbai, nabard,

NCP

MSCB: Skelatons are out of cupboard

Posted on 13 May 2011 by Ajay Jha

Next phase of war between NCP and Congress has begun with leaders of each party not

mincing words against each other. On the occasion of foundation day celebration of NCPAjit Pawar openly named congress leaders who have benefitted from MSCB.

Two cotton mills owned by Amrish Patel and P.K. Anna Patil owed the bank Rs. 380crore and they were among the highest defaulters, Mr. Pawar pointed out.

Comparing NCP with Congress he said that Congress sold sugar mills for a song whilethose sold by NCP are doing fine. Mr. Pawar stated that the government had sold off sick

sugar cooperative factories at very low rates Rs. 3.36 crore to Rs. 12 crore and in

some cases the full amount was not even recovered from the buyers. One of the buyerswas a former Congress Chief Minister.

On the other hand, the MSC Bank had sold sugar factories for much higher rates and in

some cases they were being run very successfully.

Meanwhile, Nabard reports which are trifling in paints a very bleak picture of MSCB.The

report says that MSCB is unlicenced as it is unable to maintain the 4% CRAR (capital torisk weighted asset ratio) as prescribed by the RBI. The bank should have recorded a loss

of Rs1,014 lakh in 2008-09, instead of a profit of Rs1,778.2 lakh had it truthfully made a

requisite provision as per the IRAC (income recognition, asset classification) norms.

http://indiancooperative.com/banks/mscb-row-between-ncp-and-cong-may-ease/#respondhttp://indiancooperative.com/tag/ajit-pawar/http://indiancooperative.com/tag/congress/http://indiancooperative.com/tag/mscb/http://indiancooperative.com/tag/mumbai/http://indiancooperative.com/tag/nabard/http://indiancooperative.com/tag/ncp/http://indiancooperative.com/banks/mscb-skelatons-are-out-of-cupboard/http://indiancooperative.com/banks/mscb-row-between-ncp-and-cong-may-ease/#respondhttp://indiancooperative.com/tag/ajit-pawar/http://indiancooperative.com/tag/congress/http://indiancooperative.com/tag/mscb/http://indiancooperative.com/tag/mumbai/http://indiancooperative.com/tag/nabard/http://indiancooperative.com/tag/ncp/http://indiancooperative.com/banks/mscb-skelatons-are-out-of-cupboard/

8/4/2019 Coop Rate

8/13

MSCB had not declared a dividend during 2008-09 and hence it was wrong for the bank

to claim Rs300 lakh towards the centenary year celebrations of the cooperative

movement in 2010.

The Nabard report criticises the bank for camouflaging the NPA position by violating

laid down norms and not reflecting a true picture of its financial position as on March 31,2010. An amount of Rs66,390.50 lakh pertaining to non-performing assets (NPA) and

Rs8,035.91 lakh pertaining to overdue interest receivable was removed from the balancesheet, thereby camouflaging the NPA position, the report says.

Ajit Pawar on his part says that Head of MSCB was chosen after much exercise and is an

engineer by profession. In the coming days much fire work can be expected between the

two ruling allies as ghost of MSCB refuses to disappear.

Comments (0)

Tags: ajit pawar, cooperative, MSCB Board, prithvi

Raj Chavan, sharad pawar

MSCB :Chavan denies politics

Posted on 10 May 2011 by Akshay Kumar

Maharashtra Chief Minister Prithviraj Chavan on Tuesday asserted that there was no

political reason for the dissolution of the board of Maharashtra State Cooperative Bank.

The decision to dissolve the board of the bank was taken by the Reserve Bank. Our

interest is that the bank should not go into liquidation, he said.

The board of MSCB controlled by Sharad Pawars NCP was recently dissolved by the

RBI based on a report prepared by NABARD, which pointed out various irregularities in

the bank.

Meanwhile, referring to restarting air connectivity between Mumbai and Kolhapur, andSolapur, he said one private airline company has shown interest in resuming air services

to both the cities, but there was problem of congestion at the Mumbai airport, which

needs to be attended first.

Courtsey:PTI

Comments (0)

http://indiancooperative.com/banks/mscb-skelatons-are-out-of-cupboard/#respondhttp://indiancooperative.com/tag/ajit-pawar/http://indiancooperative.com/tag/cooperative/http://indiancooperative.com/tag/mscb-board/http://indiancooperative.com/tag/prithvi-raj-chavan/http://indiancooperative.com/tag/prithvi-raj-chavan/http://indiancooperative.com/tag/sharad-pawar/http://indiancooperative.com/maharashtragujaratncrandhrabiharkeralaorissaup/mscb-chavan-denies-politics/http://indiancooperative.com/maharashtragujaratncrandhrabiharkeralaorissaup/mscb-chavan-denies-politics/#respondhttp://indiancooperative.com/banks/mscb-skelatons-are-out-of-cupboard/#respondhttp://indiancooperative.com/tag/ajit-pawar/http://indiancooperative.com/tag/cooperative/http://indiancooperative.com/tag/mscb-board/http://indiancooperative.com/tag/prithvi-raj-chavan/http://indiancooperative.com/tag/prithvi-raj-chavan/http://indiancooperative.com/tag/sharad-pawar/http://indiancooperative.com/maharashtragujaratncrandhrabiharkeralaorissaup/mscb-chavan-denies-politics/http://indiancooperative.com/maharashtragujaratncrandhrabiharkeralaorissaup/mscb-chavan-denies-politics/#respond

8/4/2019 Coop Rate

9/13

Tags: DISTRICT COOPERATIVE BANK, MSCB,

nabard, PUNE COOPERATIVE BANK

MSCB:Was NABARD Report leaked?

Posted on 09 May 2011 by Vimal Kumar

The rot in the Maharashtra State Cooperative bank is deeper than it looked. The

confidential NABARD report submitted to state government for sacking the Board of

MSCB was leaked leading to cash withdrawal by some banks controlled by NCP.

Such withdrawal indeed calls for investigations as it would seem that anybody who ispowerful can have his way with the government confidential documents.

Rushed withdrawal also leads to scramble among depositors leading to fund crisis which

is easily avoidable. MSCB is comfortable so far as fund situation is concerned.

It has a huge deposit of Rs 27,000 crores. The newly appointed administrator isconvincing people repeatedly not to get nervous. The bank has not only government

backing but even NABARD is there to bail it out should situation warrant.

But NCPs smart act has raised many eyebrows. Its five banks have withdrawn nearly

Rs 3000 crores. The banks include Pune District Cooperative banks and four moreDistrict cooperative banks.

Comments (0)

Nanded coop bank directors to face enquiry

Posted on 01 April 2010 by Ajay Kishor

MUMBAI: Five years after gross irregularities were detected in the Nanded District

Central Cooperative Bank Limited, which was headed by Maharashtra Chief MinisterAshok Chavans brother-in-law and of which his sister is a former director, an inquiry

will begin later this month.

http://indiancooperative.com/tag/district-cooperative-bank/http://indiancooperative.com/tag/mscb/http://indiancooperative.com/tag/nabard/http://indiancooperative.com/tag/pune-cooperative-bank/http://indiancooperative.com/banks/mscbwas-nabard-report-leaked/http://indiancooperative.com/banks/mscbwas-nabard-report-leaked/#respondhttp://indiancooperative.com/featured/nanded-coop-bank-directors-to-face-enquiry/http://indiancooperative.com/tag/district-cooperative-bank/http://indiancooperative.com/tag/mscb/http://indiancooperative.com/tag/nabard/http://indiancooperative.com/tag/pune-cooperative-bank/http://indiancooperative.com/banks/mscbwas-nabard-report-leaked/http://indiancooperative.com/banks/mscbwas-nabard-report-leaked/#respondhttp://indiancooperative.com/featured/nanded-coop-bank-directors-to-face-enquiry/

8/4/2019 Coop Rate

10/13

For the first time since the bank was closed, the former directors have been issued notices

for the inquiry under Section 88 of the Maharashtra Cooperative Societies (MCS) Act,

1960 for assessment of damages, according to official sources. The authorised officer forthe inquiry conducted the proceedings on March 23. The directors will be heard out.

Their list is quite illustrious and includes Mr Chavans sister and brother-in -law,

Bhaskarrao Patil Khatgaonkar, who was elected Nanded MP last year.

The bank, set up in 1923 in Nanded, hometown of the Chief Minister, was doing well tillthe end of the 1990s.

According to a confidential inspection report, dated November 11, 2005, of the National

Bank for Agriculture and Rural Development (Maharashtra Regional Office, Pune), the

management of the cooperative bank was vested in a board consisting of 34 directors(elected 27 and nominated 7) elected on August 16, 2002, for five years till August 2007.

However, after financial irregularities were observed in sanctioning of loans and

functioning of the board against the public interest, the Commissioner for Cooperation

and Registrar of Cooperative Societies superseded the board of directors with effect fromMarch 19, 2005 under Section 110A(iii) of the MCS Act. The bank had a staff of 920 as

on March 31, 2005 and 978 primary agricultural societies were affiliated to it.

The official sources said the fact-finding inquiry under Section 83 of the Act was stillunder way. Last year Mr Chavan tried to revive the bank with a grant of Rs 110 crore but

the Reserve Bank of India disallowed the proposal. Reopening of the bank was an issue

in the Lok Sabha and Assembly elections, and Mr Chavan promised the over 8,00,000depositors that they would be able to withdraw money soon.

The NABARD report, apart from slamming the banks performance, pointed to the lack

of professionalism on the part of the board of directors. Annual general body meetingshad not been conducted during the last four years, nor was liquidity problem as well asfunds management given due attention. There is a decline in advances, deposits and

recovery, coupled with a liquidity crisis. The net worth of the bank is negative.

Maintenance and balancing of books was a grey area and the bank was exposed to highrisks of fraud and embezzlement. The bank gave loans to cooperative sugar factories

which had a negative net worth and no borrowing power. Despite overdues from other

factories, a new factory was given a loan of Rs 5 crore.

The report said non-performing assets, at Rs 443.77 crore, constituted 67.4 per cent of thebanks total loans and advances. It had been incurring losses continuously for the last five

years and the accumulated losses stood at Rs 272.03 crore on March 31, 2005. There was

a 42 per cent deposit erosion. There were arrears in balancing of books, default inmaintenance of the Cash Reserve Ratio (CRR) and the Statutory Liquidity Ratio(SLR),

and an overextended position of loans and advances throughout the period covered in the

inspection (between September 15, 2005 and October 4, 2005). Apart from deficient

internal checks and controls, the bank defaulted on repayment of loans to the MaharashtraState Cooperative Bank (MSCB) to the tune of Rs 85.86 crore on due dates. (The loans

were later repaid).

8/4/2019 Coop Rate

11/13

The bank was not complying with the provisions of Section 22 (3) (a) of the Banking

Regulation (BR) Act (according to which a company shall be in a position to pay its

present or future depositors in full as their claims accrue); and Section 22 (3) (b), whichsays the companys affairs shall not be conducted in a manner detrimental to depositors

interests.

The bank defaulted on maintenance of the CRR on 19 occasions over 113 days and the

SLR on 12 occasions involving 220 days during the period covered by the inspection.The bank rented out its premises as shops to various vendors, again violating the BR Act,

and invested in the shares of six cooperative institutions outside its area of operation and

without RBI permission. The defects recorded in the previous inspection reportspersisted.

The NABARD report lists a large number of violations of banking rules and regulations.

Though a Rs 1.5-crore loan had been sanctioned to a society, the Sahakari Patpedhi

Shikshan Vibhag Maryadit, Zilla Parishad, for provision of colour television sets to its

members, no supply was made till the close of the inspection. The bank sanctioned loansfor buying vehicles to 15 directors and six former directors or their close relatives at a

concessional rate of interest, without adhering to prescribed norms. Four directors andthree former directors have repaid the loans after some action by the bank, but six

accounts are overdue.

As on March 31, 2005, the total overdues of the bank amounted to Rs 446.17 crore,

mainly under crop loan (52.10 per cent) and from sugar factories (26.05 per cent). Therecovery process was also very poor.

Comments (0)

POPULAR

COMMENTS

FEATURED

TAG CLOUD

NCUI:Dr Dinesh Mishra is the new Chief Executive BM Vyas wanted to do a Kurien on me: Parthi Bhai Bhatol

Hazira plant to get a face lift-Kribhco

Lecturer Appointment Scam : NCUI under Seize!

Sharad Pawar has no time for farmers?

Amul saga:Table turns, Bhatol is the winner

Arbitrator appointed to probe NCUI election

Pen Co-operative Bank, Raigad Penalised

Pen coop Banks Chairman arrested

http://indiancooperative.com/featured/nanded-coop-bank-directors-to-face-enquiry/#respondhttp://indiancooperative.com/?s=mscb#pop%23pophttp://indiancooperative.com/?s=mscb#comm%23commhttp://indiancooperative.com/?s=mscb#feat%23feathttp://indiancooperative.com/?s=mscb#tagcloud%23tagcloudhttp://indiancooperative.com/ncui/ncuidr-dinesh-mishra-is-the-new-chief-executive/http://indiancooperative.com/dairy/bm-vyas-wanted-to-do-a-kurien-on-me-parthi-bhai-bhatol/http://indiancooperative.com/kribcho/hazira-plant-to-get-a-face-lift-kribhco/http://indiancooperative.com/ncui/lecturer-appointment-scam-ncui-under-seize/http://indiancooperative.com/nafed/sharad-pawar-has-no-time-for-farmers/http://indiancooperative.com/dairy/amul-sagatable-turns-bhatol-is-the-winner/http://indiancooperative.com/ncui/arbitrator-appointed-to-probe-ncui-election/http://indiancooperative.com/misc/pen-co-operative-bank-raigad-penalised/http://indiancooperative.com/banks/pen-coop-bank%E2%80%99s-chairman-arrested/http://indiancooperative.com/featured/nanded-coop-bank-directors-to-face-enquiry/#respondhttp://indiancooperative.com/?s=mscb#pop%23pophttp://indiancooperative.com/?s=mscb#comm%23commhttp://indiancooperative.com/?s=mscb#feat%23feathttp://indiancooperative.com/?s=mscb#tagcloud%23tagcloudhttp://indiancooperative.com/ncui/ncuidr-dinesh-mishra-is-the-new-chief-executive/http://indiancooperative.com/dairy/bm-vyas-wanted-to-do-a-kurien-on-me-parthi-bhai-bhatol/http://indiancooperative.com/kribcho/hazira-plant-to-get-a-face-lift-kribhco/http://indiancooperative.com/ncui/lecturer-appointment-scam-ncui-under-seize/http://indiancooperative.com/nafed/sharad-pawar-has-no-time-for-farmers/http://indiancooperative.com/dairy/amul-sagatable-turns-bhatol-is-the-winner/http://indiancooperative.com/ncui/arbitrator-appointed-to-probe-ncui-election/http://indiancooperative.com/misc/pen-co-operative-bank-raigad-penalised/http://indiancooperative.com/banks/pen-coop-bank%E2%80%99s-chairman-arrested/

8/4/2019 Coop Rate

12/13

Massive vacancies in Kangra Coop Bank

Tenders/Notices

Field Reporters needed

Archive for Tenders/Notices

Top Stories

Mayawati twists Cooperatives to suit her agenda

Cooperative Banks harass farmers in Chattisgarh

RBI proposes Banking Ombudsman

Cooperative banks disbursed Rs 69,000 crore

World is there for us to conquer : Chairman, Saraswat Bank

Kudos to Cooperative banks IRDA penalizes Iffco-Tokio

Manipur fixes urea price at Rs. 400 per bag

Media will move in tandem with Cooperatives: Alok Mehta

Roadblocks before Cooperatives Kerala: Probe ordered in Cooperative run college

Saraswat Bank, ADAG in tie-up to sell core banking solutions

Didi Bank: A hit in Jharkhand

IFFCOs dividend to HAFED

Gandhinagar Nagrik Cooperative Bank penalized

Gallery

Polls

http://indiancooperative.com/banks/massive-vacancies-in-kangra-coop-bank/http://indiancooperative.com/tendernotice/field-reporters-needed-3/http://indiancooperative.com/category/tendernotice/http://indiancooperative.com/category/tendernotice/http://indiancooperative.com/lawslegislations/mayawati-twists-cooperatives-to-suit-her-agenda/http://indiancooperative.com/maharashtragujaratncrandhrabiharkeralaorissaup/cooperative-banks-harass-farmers-in-chattisgarh/http://indiancooperative.com/misc/rbi-proposes-banking-ombudsman/http://indiancooperative.com/banks/cooperative-banks-disbursed-rs-69000-crore/http://indiancooperative.com/banks/world-is-there-for-us-to-conquerchairmansaraswat-bank/http://indiancooperative.com/banks/kudos-to-cooperative-banks/http://indiancooperative.com/misc/irda-penalizes-iffco-tokio/http://indiancooperative.com/maharashtragujaratncrandhrabiharkeralaorissaup/manipur-fixes-urea-price-at-rs-400-per-bag/http://indiancooperative.com/ncui/media-will-move-in-tandem-with-cooperatives-alok-mehta/http://indiancooperative.com/blog/roadblocks-before-cooperatives/http://indiancooperative.com/maharashtragujaratncrandhrabiharkeralaorissaup/kerala-probe-ordered-in-cooperative-run-college/http://indiancooperative.com/banks/saraswat-bank-adag-in-tie-up-to-sell-core-banking-solutions/http://indiancooperative.com/featured/didi-bank-is-a-hit-in-jharkhand/http://indiancooperative.com/misc/iffco%E2%80%99s-dividend-to-hafed/http://indiancooperative.com/banks/gandhinagar-nagrik-cooperative-bank-penalized/http://indiancooperative.com/wp-content/gallery/ica-expo-bangalore/iffco%20crowd%202%20small.jpghttp://indiancooperative.com/wp-content/gallery/ica-expo-bangalore/iffco%20crowd%203%20small.jpghttp://indiancooperative.com/wp-content/gallery/ica-expo-bangalore/iffco%20gowda%203%20small.jpghttp://indiancooperative.com/wp-content/gallery/ica-expo-bangalore/iffco%20gowda%207%20small.jpghttp://indiancooperative.com/wp-content/gallery/ica-expo-bangalore/iffco%2010%20jhakar%20small.jpghttp://indiancooperative.com/wp-content/gallery/ica-expo-bangalore/iffco-3.jpghttp://indiancooperative.com/wp-content/gallery/ica-expo-bangalore/iffco-gowda5.jpghttp://indiancooperative.com/wp-content/gallery/ica-expo-bangalore/iffco-gowda-lamp-small.jpghttp://indiancooperative.com/wp-content/gallery/ica-expo-bangalore/iffco-crowd-2-small.jpghttp://indiancooperative.com/wp-content/gallery/ica-expo-bangalore/iffco-10-jhakar-small.jpghttp://indiancooperative.com/category/tendernotice/feed/http://www.indiancooperative.com/amul_stats.phphttp://indiancooperative.com/banks/massive-vacancies-in-kangra-coop-bank/http://indiancooperative.com/tendernotice/field-reporters-needed-3/http://indiancooperative.com/category/tendernotice/http://indiancooperative.com/lawslegislations/mayawati-twists-cooperatives-to-suit-her-agenda/http://indiancooperative.com/maharashtragujaratncrandhrabiharkeralaorissaup/cooperative-banks-harass-farmers-in-chattisgarh/http://indiancooperative.com/misc/rbi-proposes-banking-ombudsman/http://indiancooperative.com/banks/cooperative-banks-disbursed-rs-69000-crore/http://indiancooperative.com/banks/world-is-there-for-us-to-conquerchairmansaraswat-bank/http://indiancooperative.com/banks/kudos-to-cooperative-banks/http://indiancooperative.com/misc/irda-penalizes-iffco-tokio/http://indiancooperative.com/maharashtragujaratncrandhrabiharkeralaorissaup/manipur-fixes-urea-price-at-rs-400-per-bag/http://indiancooperative.com/ncui/media-will-move-in-tandem-with-cooperatives-alok-mehta/http://indiancooperative.com/blog/roadblocks-before-cooperatives/http://indiancooperative.com/maharashtragujaratncrandhrabiharkeralaorissaup/kerala-probe-ordered-in-cooperative-run-college/http://indiancooperative.com/banks/saraswat-bank-adag-in-tie-up-to-sell-core-banking-solutions/http://indiancooperative.com/featured/didi-bank-is-a-hit-in-jharkhand/http://indiancooperative.com/misc/iffco%E2%80%99s-dividend-to-hafed/http://indiancooperative.com/banks/gandhinagar-nagrik-cooperative-bank-penalized/

8/4/2019 Coop Rate

13/13

Do you support amendments in multi-state cooperative societies act ?

Yes

No

Can't Say

Loading ...

Our Partner Sites:

BhartiyaSahkarita.com

http://www.bhartiyasahkarita.com/http://www.bhartiyasahkarita.com/http://www.bhartiyasahkarita.com/